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Help us through the pension maze

Too much information and too many options on schemes for buying an annuity have left one couple stumped

James Charles

November 21 2009, 12:01am, The Times

Pam Dean, 58, considers herself financially savvy and confident about handling her own fiscal affairs and those of her husband. During 37 years of marriage, Pam, who trained as a book-keeper, has taken responsibility for the couple’s finances while Raymond, 59, goes out to work.

However, there is one pressing subject that she cannot get her head around — pensions. Raymond is moving into semi-retirement next month and has cut the hours that he works as a self-employed central heating fitter and plumber to three days a week. His business is expected to generate net profits of about £10,500 this year.

The couple, who live in Theydon Bois in Epping, Essex, believe it is time to use his pension pot to buy an annuity. Prudential…